STATEN ISLAND ADVANCE/MICHAEL OATESArmand Skrine, 34, of Queens, was arraigned today in Stapleton Criminal Court, in connection with the Thursday murder of David Williams.

STATEN ISLAND, N.Y. -- A Concord man's former college roommate is accused of slaying him Thursday during an apparent dispute over money, in the victim's apartment.

Armand Skrine, 34, of Queens, gunned down David Williams with an assault rifle at about 11:50 a.m. at 195 Steuben St., according to police and a law enforcement source. The 30-year-old victim lived on the seventh floor.

Skrine has been arrested on murder and other charges.

Cops and the source said Skrine and the victim had once been roommates at Post University in Waterbury, Conn. It was not immediately clear when that was.

The source said investigators are exploring a theory that the dispute turned deadly as Skrine and Williams argued over counterfeit money.

Cops found $200 in counterfeit bills in Skrine's shoe when they arrested him Thursday shortly after the killing, said the source. A duffel bag located nearby contained $1,800 in phony money, an AK-47assault rifle, a shell casing and a black mask, the source said.

According to the source, Skrine shot Williams once in the body as they argued in his apartment. The victim tried to escape and Skrine shot him in the head with an AK-47, the source said.

Williams' lifeless body was found lying in the seventh-floor hallway, police said.

A shell casing was found at the scene, said the source.

Skrine fled and was quickly nabbed, thanks to alert police work.

An officer saw a man garbed in a black trench coat running in a wooded area on Mosel Avenue, a short distance away from the shooting scene.

Officers grabbed the man, who was out of breath and turned out to be Skrine, the source said. They found the bogus money in his shoe and located the duffel bag after searching the area, said the source.

Skrine is charged with second-degree murder, said a spokesman for District Attorney Daniel Donovan. He's also accused of two counts of second-degree criminal weapon possession, one count of third-degree criminal weapon possession, for having an assault rifle, as well as possessing a forged instrument.

A tall, thin man, Skrine wore blue scrubs at his arraignment today in Stapleton Criminal Court. He was in stockinged feet.

The suspect made no statement during the brief proceeding.

Assistant District Attorney Anne Thompson told the court that Skrine claimed to have found the cash on the street.

"I found that money. I picked it up. That's what anyone would do. I was going to the S53 bus," she quoted him as telling cops.

Skrine was remanded and ordered back to court on Monday.

Outside court, his lawyer, Michael Gompers declined comment.

Besides the charges here, the source said Skrine is also wanted in Queens for alleged assault.